U.S. Two Executive Orders Signed To Speed Up Oil And Gas Infrastructure Construction

President Donald Trump signed two executive orders to speed up construction of multi-state pipelines, liquefied natural gas terminals, and cross-border infrastructure projects, that remove key obstacles to interstate commerce.

The actions by various states to prevent or slow the construction of new oil and gas pipelines and other energy infrastructure is critical to U.S. economic performance and his stated goal of American Energy dominance.

The changes in the federal government make all permitting decision concerning pipeline to 60 days only the president can “issue, deny or amend” such permits.

“The president not the bureaucracy will have sole authority to make the final decision when we get caught up in problems” Trump said.

The second energy executive order directs the U.S. Environmental Protection Agency (EPA) to review and modify what the order refers to as an “outdated” section of the “Clean Water Act” that requires applicants requiring federal permits for energy infrastructure projects that might affect federally protected waters to get certification from states where any potential contamination could happen. Under the order, EPA is expected to limit both the amount of time states have to consider pipeline and infrastructure permits and the reasons states can give for blocking permits.

The second order directs the U.S. Department of Transportation (DOT) to update its safety regulations for facilities that store liquefied natural gas (LNG). If pipelines aren’t available to deliver LNG, DOT must allow it to be carried over long distances to those facilities in approved railroad tank cars.

The executive orders are aimed to speed up the approval process for energy infrastructure.

“The two executive orders that I’ll be signing in just a moment will fix this, dramatically accelerating energy infrastructure approvals,” said Trump. “My first order will speed up the process for approving vital infrastructure on our nation’s borders, such as oil pipelines, roads, and railways. It will now take no more than 60 days, … and the president, not the bureaucracy, will have sole authority to make the final decision when we get caught up in problems.

“My second order will modernize regulations for LNG export terminals and encourage new infrastructure financing,” Trump said. “And finally, it will stop state-level abuse of water quality certifications—they abuse you; when you’re nowhere near water, they abuse you—from blocking the construction of vital pipeline projects as we rebuild our energy infrastructure.”

Rob Bradley Jr., CEO of the Institute for Energy Research, says the energy industry should act quickly to take advantage of Trump’s actions.

“The ‘keep-it-in-the-ground movement’ has declared war on oil and gas pipelines with the avowed purpose of creating bottlenecks,” Bradley said. “In the face of such obstructionism, Trump is fighting fire with fire with his executive order.

“The oil and gas industry would be well-served to accelerate their pipeline projects in the face of future obstructionism,” said Bradley.